Optimization and Coordination of Fresh Product Supply Chains with Freshness-Keeping Effort

• 成果类型: Article
• 署名作者: Cai, Xiaoqiang; Chen, Jian; Xiao, Yongbo; Xu, Xiaolin
• 署名单位: Chinese University of Hong Kong; Tsinghua University; Nanjing University
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.3401/poms.1080.01096
• 发表日期: 2010
• 页码: 261-278
• 关键词: Supply Chain Management; perishable products; cold chains; freshness-keeping effort; pricing

摘要

We consider a supply chain in which a distributor procures from a producer a quantity of a fresh product, which has to undergo a long-distance transportation to reach the target market. During the transportation process, the distributor has to make an appropriate effort to preserve the freshness of the product, and his success in this respect impacts on both the quality and quantity of the product delivered to the market. The distributor has to determine his order quantity, level of freshness-keeping effort, and selling price, by taking into account the wholesale price of the producer, the cost of the freshness-keeping effort, the likely spoilage of the product during transportation, and the possible demand for the product in the market. The producer, on the other hand, has to determine the wholesale price based on its effect on the order quantity of the distributor. We develop a model to study this problem, and characterize each party's optimal decisions in both decentralized and centralized systems. We further develop an incentive scheme to facilitate coordination between the two parties. Computational results are reported to show the effects of freshness-keeping efforts.